Market 2: Vanilla

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Overview

The Vanilla Markets is a borrow and lend market built on Morpho.

• Borrowers deposit HYPE or other assets as collateral and can borrow USDhl, USDT0, USDe, etc.

• Lenders deposit assets to earn borrower interest.

Markets

Market	Market ID	Liquidation Discount
UETH / USDT0	0xf9f0473b23ebeb82c83078f0f0f77f27ac534c9fb227cb4366e6057b6163ffbf
UETH / USDhl	0xb5b215bd2771f5ed73125bf6a02e7b743fadc423dfbb095ad59df047c50d3e81
kHYPE / HYPE	0x64e7db7f042812d4335947a7cdf6af1093d29478aff5f1ccd93cc67f8aadfddc
kHYPE / USDhl	0xc0a3063a0a7755b7d58642e9a6d3be1c05bc974665ef7d3b158784348d4e17c5
kHYPE / USDT0	0x78f6b57d825ef01a5dc496ad1f426a6375c685047d07a30cd07ac5107ffc7976
WHYPE / USDe	0x292f0a3ddfb642fbaadf258ebcccf9e4b0048a9dc5af93036288502bde1a71b1	12.67%
WHYPE / USDT0	0xace279b5c6eff0a1ce7287249369fa6f4d3d32225e1629b04ef308e0eb568fb0	12.67%
WHYPE / USDhl	0x96c7abf76aed53d50b2cc84e2ed17846e0d1c4cc28236d95b6eb3b12dcc86909	12.67%
UBTC / USDe	0x5fe3ac84f3a2c4e3102c3e6e9accb1ec90c30f6ee87ab1fcafc197b8addeb94c	7.41%
UBTC / USDT0	0x707dddc200e95dc984feb185abf1321cabec8486dca5a9a96fb5202184106e54	7.41%
UBTC / USDhl	0x87272614b7a2022c31ddd7bba8eb21d5ab40a6bcbea671264d59dc732053721d	7.41%
wstHYPE / HYPE	0xe9a9bb9ed3cc53f4ee9da4eea0370c2c566873d5de807e16559a99907c9ae227
wstHYPE / USDT0	0xb39e45107152f02502c001a46e2d3513f429d2363323cdaffbc55a951a69b998
wstHYPE / USDhl	0x1f79fe1822f6bfe7a70f8e7e5e768efd0c3f10db52af97c2f14e4b71e3130e70
hwHLP / USDhl	0xe500760b79e397869927a5275d64987325faae43326daf6be5a560184e30a521
hwHLP / USDT0	0x86d7bc359391486de8cd1204da45c53d6ada60ab9764450dc691e1775b2e8d69
wHLP / USDhl	0x920244a8682a53b17fe15597b63abdaa3aecec44e070379c5e43897fb9f42a2b
wHLP / USDT0	0xd4fd53f612eaf411a1acea053cfa28cbfeea683273c4133bf115b47a20130305
kHYPE-PT / HYPE	0x1df0d0ebcdc52069692452cb9a3e5cf6c017b237378141eaf08a05ce17205ed6
kHYPE-PT / USDT0	0x888679b2af61343a4c7c0da0639fc5ca5fc5727e246371c4425e4d634c09e1f6
kHYPE-PT / USDhl	0xe0a1de770a9a72a083087fe1745c998426aaea984ddf155ea3d5fbba5b759713

Lending Vaults

Vault	Address
USDe	0x835febf893c6dddee5cf762b0f8e31c5b06938ab
USDT0	0xfc5126377f0efc0041c0969ef9ba903ce67d151e
USDT0 (Frontier)	0x9896a8605763106e57A51aa0a97Fe8099E806bb3
USDhl	0x9c59a9389D8f72DE2CdAf1126F36EA4790E2275e
USDhl (Frontier)	0x66c71204B70aE27BE6dC3eb41F9aF5868E68fDb6
HYPE	0x2900ABd73631b2f60747e687095537B673c06A76

Liquidations

Vanilla Markets are built on the standard Morpho smart contracts, which means liquidations follow the same mechanism as on Ethereum Mainnet or Base. Liquidations occur when a borrower's health factor falls below 1.

Any third party—typically bots or keepers—can call the liquidate function to repay a portion of a borrower's debt and seize a corresponding amount of collateral at a discount.

The relevant contract for liquidations of Vanilla Markets on HyperEVM is the Morpho contract, deployed at:

0x68e37de8d93d3496ae143f2e900490f6280c57cd

View on Purrsec

Liquidate Function

• Contract: Morpho Blue Core

• Purpose: Liquidates an undercollateralized borrower's position by seizing collateral in exchange for repaying a portion of their debt. This helps maintain protocol solvency and allows liquidators to earn a liquidation bonus.

• Function Signature:

liquidate(
    MarketParams memory marketParams,
    address borrower,
    uint256 seizedAssets,
    uint256 repaidShares,
    bytes calldata data
) external returns (uint256 seizedAssetsOut, uint256 repaidAssetsOut);

Parameters:

• marketParams: Struct containing the market’s configuration (collateral/loan asset addresses, oracle, lltv, etc.)

• borrower: The address of the user being liquidated.

• seizedAssets: The amount of collateral (in collateral token units) to seize. Set this to 0 if you're specifying repaidShares instead.

• repaidShares: The amount of debt shares to repay. Set this to 0 if you're specifying seizedAssets instead.

• data: Optional payload for advanced integrations. Used for callbacks or flash logic.

Return Values:

• seizedAssetsOut: The actual amount of collateral seized.

• repaidAssetsOut: The actual amount of loan token paid to repay the borrower's debt.

Notes:

• Either seizedAssets or repaidShares must be set to zero. The protocol computes the corresponding value based on price and the liquidation incentive.

• Only undercollateralized positions (health factor < 1) are eligible for liquidation.

• A liquidation incentive is applied to reward the liquidator with a discount on the seized collateral.

• A onMorphoLiquidate callback is supported if data.length > 0.

Example Use Case: If a liquidator wants to repay a borrower's debt worth 1,000 USDT0, they can call liquidate(...) with:

• repaidShares ≈ equivalent to 1,000 USDT0 worth of shares (calculated based on market totals)

• seizedAssets = 0

• Let the protocol compute the amount of collateral to seize (based on current oracle price and incentive factor)

Open Source Bots

Liquidation Bot 1

By: morpho-labs

Languages and Tools: Typescript & Solidity

Description: A simple, fast, and easily deployable liquidation bot for the Morpho protocol. This bot is entirely based on RPC calls and is designed to be easy to configure, customizable, and ready to deploy on any EVM-compatible chain.

Repository: Morpho-liquidation-bot

Liquidation Bot 2

By: morpho-labs

Languages and Tools: Typescript & Solidity

Description: This contribution presents a simple implementation of a liquidation bot that can liquidate unhealthy position on Morpho. Using Typescript and Solidity.

Repository: Morpho-liquidation-bot-educational

Liquidation Bot 3

By: etherhood

Languages and Tools: Rust & Solidity

Description: This contribution presents a detailed strategy for liquidations using Rust and Solidity.

Repository: Liquidator-Morpho

Liquidation Bot 4

By: zach030

Languages and Tools: Go & Solidity

Description: This contribution presents a detailed strategy for liquidations using Go and Solidity.

Repository: morpho-liquidator-bot